The European Bank for Reconstruction and Development is not ready to grant loans for modernization of the Ukrainian gas pipelines

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KIEV, February 28 (Itar-Tass) —— The European Bank for Reconstruction and Development (EBRD) is not ready to grant loans for modernization of the Ukrainian gas pipelines, EBRD senior banker Paul Shapiro said on Tuesday.

He said that the Ukrainian authorities had not taken tangible efforts to reform Naftogaz Ukrainy. Besides, Ukraine did not meet its commitment to bring consumer gas fees to an economically expedient level. The EBRD will continue to negotiate investments, but it needs proof of reforms, Shapiro said, wondering how one could credit a loss-making company.

He welcomed IPO plans of Naftogaz Ukrainy executives, but said that the bank did not see its mechanism so far.

Neftegaz Ukrainy and the EBRD signed a memorandum on funding the first stage of reconstructions of Ukrainian gas pipelines, including the Ukrainian segment of the Urengoi-Pomary-Uzhgorod trunk pipeline, in July 2011. The bank said it was ready to give a loan of $154 million for the project.